The digital world is a passion for local entrepreneur Chris Farias. So is Hamilton. And so is philanthropy.
By creatively combining the three – and with help from the community foundation, his peers, and local residents – he has created a fund that will give more Hamiltonians the skills and resources they need to take advantage of the digital community.
The #HamOntForever initiative used crowd-funding to raise donations from the online community. The first $10,000 in donations were matched by four donors identified by the community foundation, forming a fund to make grants promoting digital literacy.
Digital literacy is a way of life for Chris’s team at Kitestring, a creative branding company, but their work with Hamilton Community Foundation has shown them that not everyone shares that easy access. So the idea of the fund struck a chord with them – and with their local partners. Double Barrel Studios and Brave New Code “jumped in immediately,” says Chris. “This initiative would not have happened without them.”
The partners created a website and a video to launch the campaign, and wrapped up two months later with a day-long telethon, with notables like Mayor Fred Eisenberger taking a turn at promoting the cause. The effort got great media coverage and Chris hopes contributions continue to come in. As a “perk” for donating, contributors could submit a hashtag, tweet, post, or video into a digital time capsule that will be revealed in 2030.
“For me, digital literacy means the ability to navigate, evaluate, communicate, and create online,” says Chris. He believes that Hamilton is one of the most connected communities, but wants to make sure everyone has access to that online world. Grants will be made annually over the next 15 years to support that goal.
“Things change so fast in the digital environment,” Chris says. “Who knows what will be hot 15 years from now. Maybe we’ll open the time capsule and say ‘oh my gosh, remember Twitter?’”
Excerpt from 2015 Annual Report
Ray Brillinger and Cy Hack spent a couple of years educating themselves about community foundations before they established their fund at HCF in 2014.
Ray is a retired human resources manager and organizational change consultant. Cy spent his career in administrative, hospitality, and retail work. Both currently do volunteer work in the community.
A couple since 1982, Cy and Ray have been active supporters of key gay and lesbian groups for decades. While they have seen great progress during their lifetimes in the rights and protections for the LGBTQ community, they are well aware that the fight for dignity and equality is not over. They plan to continue supporting that sector through their fund, along with other areas that interest them – including international development charities, the arts and education opportunities for disadvantaged youth.
The community foundation model felt like a great fit for them, not only as part of their estate planning but also for their current philanthropy. They like the flexibility the community foundation offers to build their fund over time, vary the groups they support, and grant to any eligible Canadian charitable organization.
The process of establishing the fund was a positive one. “The discussions we had about this were very comfortable,” says Cy. “We like the people at the community foundation and feel they understand what we are trying to do.”
“As we don’t have children,” adds Ray, “the fund is an important part of our estate planning.” He feels that the relationship he and Cy develop with Foundation staff over the coming years will help guide the granting decisions the Foundation makes when they are gone. While their fund agreement lays out their areas of interest, “there may be a need in the community that the staff see and say ‘that’s something Ray and Cy would have liked to support,’” he says.
Maria Antonakos and Harald Stover support the causes they care about in a variety of ways. The fund they’ve recently established at the Hamilton Community Foundation is a special pillar in that giving.
Harald, a professor in McMaster’s Department of Chemistry, describes the fund as an opportunity to address financial planning needs through a philanthropic instrument.
He explains that his side of the family came from Germany in each of three generations – his paternal grandparents in the early 1900s, his mother in the 1950s, and himself as a graduate student in the 1980s.
“My family were welcomed to Canada, and I received a great graduate education here,’” he says. “This is one way to give back to the community.”
Maria agrees. “There’s a ‘circle feeling’ about this – a looking forward and back.” She explains that she and Harald had their children late in life and that they hope to use the fund to teach their twins about managing money and being philanthropic. “This is something we can get started now, with smaller gifts, and that the kids can grow with over time.”
The endowment aspect of the fund is important to both Maria and Harald. They like the sense of permanence it provides, allowing them to focus on the grants they choose to make while they leave the investment and administration concerns to the community foundation.
For Maria, whose career has involved diverse aspects of philanthropy, the Foundation’s knowledge of Hamilton’s needs and opportunities is also a big plus. “Since I’m working outside of Hamilton,” she says about her current position with the Perimeter Institute, “this is a way to have a community focus as a family.”
Harald agrees: “The community foundation knows the local scene. They have expertise about what organizations are doing really good work in the area. It’s a great partner in our philanthropy.”
excerpt from 2015 annual report
Hamilton is getting its act together with a program to support its emerging theatre-makers.
ALERT, which stands for Artistic Leadership and Entrepreneurial Training, is a no-cost educational initiative of The Hamilton Fringe Festival. The focus is on helping performing artists aged 19 to 30 develop their artistic and production skills. “We want to give a boost to the next generation,” says Claire Calnan, director of The Fringe. “We want them to take their skills to the next level.”
The Hamilton Fringe is a perfect home for ALERT. Like Fringe Festivals around the world, Hamilton’s group showcases the original work of emerging artists and companies of all sizes through its summer festival. ALERT takes this support a step further.
Monthly workshops are bringing in big names from across Canada to teach the 18 participants practical skills such as budgeting, marketing, fundraising and the intricacies of producing work at non-traditional locations. Participants will also collaborate on a winter theatre festival and mentor local youth with an interest in the arts. But a key element of the program is creating a strong sense of community among emerging artists in the city. “We want them to inspire and push each other,” Claire says.
It’s working already. Aaron Jan is a 22-year-old Hamilton native who has produced several successful Fringe shows. After only one workshop, he has plans to collaborate with three other young theatre companies to ensure a year-round lineup of independent theatre in the city.
The Player’s Guild is providing rehearsal space, while support from the Hamilton Community Foundation covers workshop costs and program coordination.
Claire says there is a real need in Hamilton. “We have Theatre Aquarius and community theatre groups but there’s a middle ground that’s missing—professional theatres where artists can develop their voices and skills while producing new work,” says Claire. “HCF can take credit for helping to create the next generation of theatre-makers in the city.”
“ALERT gives young artists a reason to stay in Hamilton,” Aaron says. “It offers us infrastructure and support. It’s not just about performing our work, but improving it.”
Excerpt from 2015 Annual Report
Heidi Balsillie feels her new partnership with HCF is “a great way to connect with my past and, at the same time, contribute to a vital future for the city of Hamilton.” 
Heidi grew up in Hamilton but has lived in Waterloo for the last twenty-five years. Through her recently-established private foundation, called the Fairmount Foundation, she has joined forces with HCF to research the best ways to make post-secondary education opportunities available to all Hamiltonians.
Both HCF and Heidi believe that education will be the “game-changer” in Hamilton’s future. The Fairmount Foundation is partnering with HCF on in-depth research that is examining which models and approaches are most effective at helping youth to reach their full potential. The results will define strategies for both foundations to help youth and adults succeed in high school and beyond.
“I’m fortunate that I can be involved in this innovative groundwork with HCF,” she says about her commitment to the partnership.
The Fairmount Foundation is just two years old, and Heidi is feeling her way in the new venture. The connection to Hamilton Community Foundation’s staff and process has been a boon. In the years ahead, the two foundations expect to involve others in the collaboration.
The partnership has also cemented Heidi’s enduring ties to our area.
“The Fairmount Foundation is named for the street I grew up on in Hamilton,” she says. “And as I work through its priorities and goals, I realize that they reflect my Hamilton roots, my family, the values my parents taught us about respect and fairness.” Her siblings still live here, as do many of her friends.
Looking ahead, she acknowledges that changing the trajectory for youth in disadvantaged neighbourhoods is a long-term investment. “This kind of change does not happen quickly. But it has the potential to transform the whole community. It’s exciting. I’m in it for the long haul.”
Back to School Moms has a simple formula: onsite childcare plus certified teachers plus supportive peers equals more women who successfully sit their high school equivalency exam.
The goal is to increase the women’s financial independence and, as a result, the quality of life for their children.
Newcomer moms aged 19 years and older can apply for the free program, which is delivered by the Immigrant Women’s Centre (IWC) at its Main Street location. Students in the program come from countries as diverse as Iran, China and Mexico.
Yujung Kwon is one of the moms. She arrived in Canada three years ago from Korea with an electrical engineering degree but could only find part-time work in a Korean restaurant. “I didn’t really learn English there,” she says. “In this program you learn everything in a short time. The teachers are excellent. I want to pass the test and then go to college.”
“These are women who want to work,” says Ines Rios, executive director of the IWC. “Most are educated but they don’t have Canadian credentials. Some are from war-torn areas of the world. Some are supporting their families alone because their marriages ended or they left abusive relationships. They all have children.”
Back to School Moms is the only high school completion program in Hamilton that offers onsite childcare, which Ines says is a critical need for newcomer mothers.
Supported by HCF’s Edith H. Turner Foundation Fund and Women 4 Change, the pilot year will have two separate 26-week sessions, each with 325 hours of classroom time—enough for most women to sit the General Education Development (GED) exam with confidence. Training follows the standard GED preparation textbook. Two certified teachers provide hands-on support, but the women also help each other. “We can give back to each other,” says Yujung.
“Certified teachers are key to a high quality program,” says Ines. “We think this program will be vital, not only to the women, but to the economy of Hamilton.”
Excerpt from 2015 Annual Report
Hamilton’s older urban neighbourhoods have one defining feature: alleyways. Ward 3 alone represents 37 per cent of all alleyways in Hamilton, the largest percentage of alleyways in any ward. While they offer easy access to homes and businesses, alleyways have grown to be the site for illegal dumping, overgrown vegetation and drainage problems.
Green Venture is looking to change that. Beginning with the GALA (Gibson and Landsdale Area) neighbourhood hub, the organization wants to clean up and repurpose alleyways in the neighbourhood, a task that seeks to engage GALA residents. The GALA neighbourhood has a population of more than 7,700 residents and is geographically bounded by Wellington Street North, Main Street East, Sherman Avenue South and the CN rail line. With a dual purpose of restoring natural diversity and inspiring communities to reconnect urban landscapes to nature, the Alleyway Revitalization Project taps into these local assets and builds upon local knowledge and connections.
Supported by an HCF grant, this community-led project starts by identifying potential project locations in GALA. Consultations with residents are held to review possible site plans and design options. Community surveys and consultations determine how the spaces will be improved. In the process, residents propose alternate uses for a public alley, such as a marketplace, green space or for other community events. The goal is to reclaim alleys as public places.
There is a clear need for this project. Stormwater runoff can result to flooding, erosion and sewer overflows. Flowing rainwater over pavements also picks up polluting materials, leading to water quality degradation and compromising human health and safety. This project includes removing some of the concrete and asphalt in alleyways and replacing it with native plants, trees and shrubs to reduce runoff, recharge groundwater supply and reduce the heat island effect.
Collaboration and partnerships with local organizations, such as the Conserver Society of Hamilton & District, the Social Planning and Research Council and the Hamilton Community Garden Network, ensures that the project draws on the expertise and assistance needed. With a year-long plan in place, Green Venture expects to affect and involve 200 people in the GALA hub. A maintenance plan will ensure sustainability and long-term care of the space after the project has ended.
From the iconic Canadian National Railway tracks to the fast-growing development of the new James North GO station, you will find the past and present converging in north Hamilton.
Central Neighbourhood Association (CNA) wants to shed light on the rich history and celebrate the future of the neighbourhood – one story at a time. This resident-driven association was re-established in 2012 with an aim to create a forum where residents can voice their concerns and organize community initiatives. Located in the Jamesville neighbourhood, the association is bounded by Main Street West, Queen Street North, James Street North and the CN Tracks at Stuart Street, in downtown Hamilton.
In partnership with local historic landmark The Workers Arts and Heritage Centre, CNA collected community stories and encourages residents to embrace Hamilton’s history through storytelling workshops and neighbourhood walking tours, Supported by HCF, this storytelling project took place in various venues in the neighbourhood, including seniors’ homes, schools and points of historical interest.
The six-week project called Stories from the Central involved professional storytellers providing input and guidance in the art and craft of storytelling. This culminated in a 90-minute narrated walking tour where residents shared stories about their home and neighbourhood. The project goals were to promote understanding of the past, pride in Hamilton history while providing tools for residents to enhance their involvement in the neighbourhood.
Some 80 at-risk youth are singing a new tune, thanks to a Liberty for Youth program.
With the help of a karaoke music studio, leadership curriculum and volunteer mentors from Hamilton Police Services, the program helps participants identify their strengths, connect with caring adults and make constructive choices.
Supported by an HCF grant, karaoke in the renovated studio feels like hanging out with friends, with the added benefit of creative self-expression and positive risk-taking. While karaoke helps youth find their voice, the leadership program and one-on-ones with police officers help them find their feet: they’re finishing high school, moving on to jobs or college, and developing the skills to overcome their circumstances.
Community health brokers build a bridge to wellness in Crown Point
A successful cancer screening program called CASTLE (Creating Access to Screening and Training in the Living Environment) is expanding to help residents in the Crown Point neighbourhood take important steps to better overall health.
Focus groups in this east Hamilton community revealed the need for improved health care access and prevention information. Funded by HCF, “CASTLE Beyond” uses a trained community health broker—someone who is known and trusted in the neighbourhood—to link residents to health promotion services. It’s a strategy proven to be effective, especially for underserved groups.
Through neighbourhood partnerships, the program focuses on the community’s self-identified needs and interests. In tandem with a public health nurse, the brokers connect with residents and organizations, to work together to promote health information and health-related activities. By increasing their knowledge and confidence, residents are empowered to overcome barriers and take action on their own health, including accessing screening and other services and lowering chronic disease risks.
Donations to the Foundation are invested for the long term in public markets and in alternative investments. Investment income is then allocated annually to support granting, community leadership and operations. The summary and charts presented here provide both a financial snapshot and a history of recent activity that underlies the grants and community leadership activities represented in this annual report, made possible by remarkable donors.
Donations to the Foundation are from individuals, corporations and other charities. Donors may contribute to named endowment or flowthrough funds, to the Board-directed Community Fund, or to HCF’s community leadership projects.
The $35.1 million in donations this year is the second highest total in HCF’s history. Annual donations are influenced by the timing of the realization of donations in wills and significant one-time donations like the $27.7 million in donations of property and private equity. As illustrated in Chart 1, annual donations have ranged between $3.2 and $35.1 million over the past eight years. The five-year rolling average of donations ranges from $5.0 million to $13.3 million over the past eight years.
The five-year rolling average number of donations is 1,787 with 2019-20 at 1,853. The number of donations fluctuates based on “in memoriam” donations and the number and nature of events sponsored by donors to raise money for their funds.
Chart 1
Grants are made annually from both endowed and flowthrough funds. Because flowthrough fund balances are distributed in a shorter time period, granting from these funds can materially influence HCF’s total annual amount granted.
As illustrated in Chart 2, grants and community leadership project spending over the past eight years has ranged from $4.7 million to this year’s historic high of $11.5 million. Granting from endowment funds was reduced in 2013 as a result of the decline in investment returns in 2012 which a) lowered the asset base used for the granting calculation (currently four percent of the fund balances), and b) resulted in less income available to grant. Flowthrough granting and expenditures on community leadership projects has ranged from 22 to 56 percent of total granting in any given year and is dependent on the timing and nature of flowthrough and project activity. At 893, the number of grants for this year is 37 percent higher than the eight-year average.
Chart 2
Investments traded in active markets are reported at fair market value. Investments not actively traded are recorded at their cost less any impairment of their value.
To support our strategy of aligning our assets with our mission and to provide a more diverse and robust portfolio, HCF has committed to investing in alternative asset classes including loans to charities and not-for-profits, private debt, real estate, infrastructure and private equity. These alternatives are consistent with the Foundation’s long-term investment horizon and liquidity requirements. Since these investments are not actively traded, they are valued at cost in the investments. These alternatives total $25.8 million.
HCF invests according to policy guidelines established by the Board of Directors. Two committees of the Board oversee investments to ensure compliance with the policy:
As an endowment builder, HCF’s policy focuses on long-term investing and is supported by reserve accounts that are currently at their policy maximum.
The investment policy sets out a total portfolio target asset mix, as well as a range around these targets. The public market investment managers have mandates within this targeted asset mix and use their discretion to invest the portfolios within this range. Chart 3 reflects the current and target asset mix. Note: $25 million of private equity relates to a fund established by a donor and is not part of the asset mix or the consolidated portfolio results.
Chart 3
Two long-term portfolios are invested in the public markets with Jarislowsky Fraser, and Connor, Clark & Lunn. Chart 4 compares those portfolios against benchmarks as follows:
Benchmarks reflect the performance of each market index based on HCF’s specific target asset mix. Comparing actual results to the benchmark measures the value added by investment managers compared to the average market performance. HCF’s investment policy target is a long-term investment return in the 6.5 to 7.5 percent range.
Chart 4
The effect of the global pandemic has materially affected investment returns, resulting in a -8.4 percent public market return for the year. The seven-year annualized return at 6.8 percent is within the targeted investment policy range and is 1.2 percent higher than the 5.6 percent benchmark. As noted in the financial highlights, the current 10-year annualized return of 7.0 percent is in the target range and is higher than the benchmark by 1.2 percent.
Impact investments enable donations to endowed funds to drive positive change beyond granting, because they represent investments of capital that deliver financial returns coupled with positive social and/or environmental outcomes. In addition, these investments provide a pool uncorrelated to the public markets which, in turn, buffers the portfolio from the volatility currently experienced.
More than 15 percent of our long-term assets are in impact investments. Chart 5 illustrates HCF’s impact investing progress over the past five years, with $25 million currently placed or outstanding and another $15 million committed. This brings the total commitment to $40 million, up from $34 million last year. Impact investments cover areas including affordable housing, arts, environment and sustainable development.
Chart 5
Local loans since inception total $9.7 million with $7.1 million outstanding at year end. Chart 6 shows the impact areas our loans have supported. Since the loan program’s 2012 inception, $2.6 million in loan principal has been repaid and recycled as new loans. In addition, the interest from these loans supports HCF granting.
Chart 6
IRP is a Government of Canada program being delivered nationally by partners including Community Foundations of Canada. As the first phase in the government’s long-term investment in social finance, the IRP’s goal is to make social-purpose organizations “investment ready” so they can make a difference in new and innovative ways through their participation in the social finance market. HCF has partnered with community foundations in London and Niagara, and the McMaster Innovation Park to manage the program regionally on behalf of Community Foundations of Canada. The first request for proposals for funding in January created enormous interest nationally and garnered 65 submissions to our regional partnership. Approved funding is expected to be released in June 2020. As an additional benefit, the IRP brought a growing number of potential opportunities for local loans to HCF’s attention.
These investments include private equity, private debt and real estate investments. Many of these investments are long term in nature, are maintained at cost and do not have a regular income stream. As these investments are maintained at cost, their results include interest income and realized gains, but not unrealized gains. Results for these investments are closely monitored and are reported when realized. Chart 7 identifies the investment areas, with $18.0 million placed and a total commitment of $33 million across 21 investments.
Chart 7
Operating expenses for the fiscal year ended March 31, 2020 total $2.5 million and were 2.5 percent higher than last year. Staffing costs related to the Foundation’s 22 employees represent 70 percent of HCF operating costs.
In addition to breaking out cost by type, operating costs are allocated to each of the Foundation’s operating areas: grants administration, community and philanthropic leadership, community relations and knowledge dissemination, development activities, and administration and governance. Examples of community and philanthropic leadership include convening around the city’s critical issues and fostering the growth of philanthropy by sharing staff time and knowledge to support other charities. Charts 8 and 9 illustrate these costs by operating area and by expense type.
Charts 8 and 9
The Foundation’s annual development expenses are not necessarily attributable to the donations received in that year. The nature of donations to the Foundation can result in costs preceding the receipt of the donation by several years (for example, donations through wills). As a result, consistent with the community foundation sector, operating costs are evaluated by a ratio of total operating expenses to average total assets. Ratios fall within a range depending on the size and stage of the community foundation’s development.
Management considers the ratio of 1.26 percent (1.25 percent in 2019), as illustrated in Chart 10, to be within an acceptable range for a foundation of HCF’s size, stage and level of community leadership, compared against benchmarks established in the community foundation sector. We continue to monitor both the actual results and the benchmarks on an ongoing basis.
Chart 10
Hamilton Community Foundation’s total assets of $201 million at March 31, 2020 include balances of HCF funds and funds held on behalf of others at $1.7 million.
Hamilton Community Foundation’s fund balances, illustrated in Chart 11, represent accumulated donations plus the net investment earnings on these donations, minus granting and operating costs. Funds include both endowed and flowthrough funds. Endowed funds are held permanently and grant from investment earnings. Flowthrough funds are fully distributed as grants over a pre-determined term.
Chart 11
The fund balances have grown 55 percent to $198 million at the year ended March 31, 2020 from $128 million in 2013. Donations of $35.1 million included $4.4 million in flowthrough donations that were largely distributed as grants in the year and, as a result, do not remain in the fund balances at year end. This results in a modest total funds balance growth of 4.8 per cent for the year. The number of funds has grown 19 percent to 377 from 318 in 2013.
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